Toshiba shares recover from early plunge on accounting report

Bloomberg

Shares of Toshiba Corp. recovered from an early dive after the Asahi newspaper reported regulatory concerns about the company’s earnings.
Toshiba rose 2.3 percent to 289.6 yen as of 11:13 a.m. in Tokyo after slumping as much as 6.9 percent in early trade. Japan’s Securities and Exchange Surveillance Commission suspects the company padded earnings by about 40 billion yen ($339 million) in the three fiscal years through March 2014, Asahi reported citing unidentified sources. Toshiba didn’t immediately respond to a request for comment. Toshiba shares have been under pressure for more than a week after announcing it may write down billions of dollars at its energy unit. That news came as the company, which also makes personal computers and memory chips, recovers from an accounting scandal in 2015 that claimed the jobs of three presidents, led to record losses and prompted job cuts and the sale of businesses.
Investors have priced in a lot of bad news and the focus is shifting to positives, such as the company’s semiconductor business, according to Masahiko Ishino, an analyst at Tokai Tokyo Securities.